Why do you shop at Costco? Simple, right? Because you know it will lower your costs.
It's the same reason employers self-fund their health insurance plan. But can you imagine going to Costco and the only thing you ever bought there was toilet paper? You would definitely save on that item...but in the grand scheme of things, it's not going materially impact your bottom line.
Think of self-funding like getting the Costco card and using it for one item. If self-funding is the only change you make, don't expect a big impact. You have to take advantage of the full flexibility it offers. At Costco, that could be groceries, tires, flooring, etc.
With self-funding, these 3 areas of flexibility unlock the power of self-funding:
1.) Plan Design
2.) Vendor Partners
3.) Financial Risk
Watch the video above to learn more about each.